Which brilliant founders (of tech companies) have emerged from China? They have a large number of businesses but you can study metallurgy and learn how to make steel but that doesn't make you the kind of person who can create something truely new.
douban
Sina
BYD
innovative games
payment systems
group buying
Also, China's capital tends to be directed to "made-in-China" manufacturing, where they have a huge advantage. That leaves high-tech startups choked for funds. How many New York startups can you name really fast?